stimulus plan - loan limits

Nineteen metropolitan areas are likely to notice a direct impact from an increase in conforming loan limits included in the proposed economic stimulus plan, according to a Washington-based policy research firm.
Seven of those areas are in California, six are in the greater New York area and two are in Massachusetts, according to Stanford Group Co. Others are in the greater Washington area, Boulder, Colo., the greater Miami area and the Seattle-Tacoma region.
The proposal, discussed by House Financial Services Committee Chairman Barney Frank (D-Mass.) this week, permits Fannie Mae and Freddie Mac to securitize mortgages up to 125% of the local median home price, according to the research firm. The limit is capped at $729,750.
But the limit won't dip lower than $417,000, the existing loan limit, even in less-expensive housing markets where 125% of the median home price is lower than that amount, according to Stanford's interpretation of the proposal. The temporary loan limits would expire on Dec. 31, 2008, the group reported
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